Car coupling fever continues with GM and Hyundai teaming up on EVs and hydrogen

Auto tie-ups are nothing new, but they have become more frequent and wide-ranging in the age of clean energy and alternate fuel sources, as companies seek to spread out the cost and risk of adopting expensive new technologies.

The latest alignment is between General Motors and Hyundai, which are joining forces to co-develop new passenger and commercial vehicles, including EVs and hydrogen fuel-cells. They will also explore ways to save money on the acquisition of battery raw materials and steel, among other crucial supplies.

The two companies have signed a memorandum of understanding — as one does — to “look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster.”

The key word there is “faster,” as EV sales growth appears to be petering out, leading to a lot of skittishness in the industry. A lack of affordable models available and historically high interest rates is sapping some of the enthusiasm from car buyers. And GM and Hyundai are hoping that their combined mettle can help pick things up again.

The two companies are among the most aggressive on electrification in the North American market. GM has a range of available EVs under its many brands, including the Chevy Silverado, Equinox, and Blazer EVs, Cadillac Lyriq, Hummer EV, and GMC Sierra EV. Meanwhile, Hyundai and its sister company Kia have quietly emerged as EV powerhouses with their popular Hyundai Ioniq 5 and 6, and Kia EV6 and EV9.

Both are also actively engaged in building out their respective hydrogen businesses. GM jointly owns a fuel-cell production factory with Honda, while Hyundai has said that hydrogen will play a “prominent role” in its effort to go carbon neutral.

Where this all will lead is a little unclear right now. But a relevant example could be the recent collaboration between GM and Honda, in which Honda introduced the electric Prologue SUV built on GM’s Ultium platform — and then that was basically it. The two companies were supposed to release a lineup of affordable EVs, but abandoned the plan after determining it would be too difficult.

There’s no mention of “affordable EVs” in GM and Hyundai’s respective announcements — or EVs in particular, aside from a vague reference to “electric [and] hydrogen technologies.” But it’s still early days of this partnership. We’ll have to see where it goes.